* Nikkei highest since May 7
* Chip-related stocks, electric component makers surge
* JSR falls on Japan high-tech export restrictions to South
Korea
By Ayai Tomisawa
TOKYO, July 1 (Reuters) - Japan's Nikkei surged to near
two-month highs on Monday morning as risk sentiment improved
after the United States and China agreed to restart trade talks,
while tech share also got a lift on an easing of restrictions on
Huawei.
The Nikkei share average .N225 jumped 1.8% to 21,658.93 at
the midday break, after hitting a high of 21,669.65 the best
level since May 7.
China agreed to make unspecified new purchases of U.S. farm
products and return to the negotiating table, after a weekend
meeting between U.S. President Donald Trump and Chinese
President Xi Jinping. No deadline was set for progress on a
deal, and the world's two largest economies remain at odds over
significant parts of an agreement. Trump offered an olive branch to Xi on Huawei Technologies
Co HWT.UL , the world's biggest telecommunications network gear
maker. Washington had put Huawei on an export blacklist citing
national security issues, barring U.S. suppliers from selling to
the company without special approval.
Trump said the U.S. Commerce Department would study in the
next few days whether to take Huawei off the list of firms
banned from buying components and technology from U.S. companies
without government approval.
"These are all positive news to the market," said Shogo
Maekawa, global market strategist at JPMorgan Asset Management.
"The part about Huawei was particularly a positive surprise to
the market."
Chip-related shares and electric components maker rallied.
Tokyo Electron 8035.T surged 4.7%, Advantest 6857.T jumped
6.1%, TDK Corp 6762.T advanced 6%, Sumco Corp 3436.T added
3.7% and Minebea Mitsumi 6479.T rose 4%.
Other companies which have high exposure to China also
gained ground. Murata Manufacturing 6981.T jumped 5.3%,
Yaskawa Electric Corp 6506.T surged 4.6% and Keyence Corp
6861.T added 2.8%.
On the other hand, resin products maker JSR Corp 4185.T
dropped 3.5% after the industry ministry said that Japan would
tighten restrictions on exports of high-tech materials used in
smartphone displays and chips to South Korea in response to a
South Korean ruling on war-time forced labour. The broader Topix .TOPX surged 1.7% to 1,576.75, with all
of its 33 subsectors in positive territory.
(Editing by Jacqueline Wong)